Analysis of the Private Service Provider model from the SILC Innovations Project Tanzania

Catholic Relief Services (CRS) has supported the Savings and Internal Lending Communities (SILC) model that features Private Service Providers (PSPs) as a key component. CRS needed to determine the performance of the PSP model in terms of service sustainability and potential for expansion into other non-formal financial services, in the form of structured savings and credit groups, have expanded rapidly over the past decade. Between 2008 and 2012, Catholic Relief Services (CRS) with funding support from the Bill & Melinda Gates Foundation, has worked with the Private Service Provider (PSP) model in 10 districts in Northern Tanzania and the Lake Zone. Through five local implementing partners, 244 PSPs have graduated and trained groups using a replicable, fee-for-service model. Since it is a relatively recent concept, before CRS expands this model to other regions, it was important to examine the effectiveness and sustainability of the existing PSP model.

This study aimed to provide CRS with information about the status of PSPs and their work. DPC wanted to find out if their groups are still in operation, if they have established new groups after the close of the SILC program, and if they have initiated new services. CRS also needed to know if the PSP network is still functioning, if new apprentices have been trained, what new services are in demand, and if this work provides a sustainable livelihood for PSPs.

DPC designed the research instruments, carried out data collection in the field, and conducted the analysis and reporting in order to present a comprehensive picture of the status of the PSP model, as well as recommendations going forward.